What is economics?
Economics is the study of how money, trade, and industry are organized in society and deals with the scientific methods used to understand how scarce resources are exchanged in society.
Economists in business school also study theories and techniques to develop policies in government to lift the veil of prevailing ignorance about the methods of efficiency in industrialization today.
There is another definition of economics, given by the American economist Thomas Lewis, who said that economics is the study of the relationship between cause and effect.
How has economic thinking evolved?
traditional society
Traditional fields and traditional societies face two obstacles, either because modern science and advanced technology are not widely available or because they are not developed and applied as mainstream approaches.
However, there may be practical applications of these innovations. The expansion and growth of production are also related to the expansion of available space.
There have also been several changes in the composition of internal and external trade. The scope of traditional society is distinguished by the fact that each individual product can reach a certain level that cannot be exceeded. The agricultural sector has a large amount of resources at its disposal.
Conditions for beginning
It covers a considerable period, about a century or more, in which the starting conditions are determined, and these conditions include the main changes in the social, political, and economic spheres, including :
Attempts to change society's thinking and orientation toward science and risk for money and profit.
The ability of the labor force to deal with and adapt to situations.
Political sovereignty.
Development of the tax system and financial institutions.
Establishment of public and economic institutions such as railroads and educational institutions.
Source:
This is a very important period of about two to three decades during which economic growth is directed in such a way that it can somehow develop independently, and this period is characterized by a significant increase in investment rates leading to an increase in individual production.
This is followed by fundamental changes in production and disposal techniques through increases in volume via higher rates of investment and a consistent increase in per capita production. For any projected population growth, the second issue is the shortening of the period set to allow for the emergence of economic attributes or wealth, and the third issue is the sustainability of economic growth.
The path to adulthood
An individual's total capital grows as the economy develops, with the rate of primary production slowing due to declining surplus returns.
The era of high mass consumption.
Average per capita income will rise sharply during this period, and this will provide for basic needs such as clothing, housing, and food. This phase is represented by the private economies of the US, UK, West Germany, and Japan, while India is still in the second phase.
characteristics of the economic concept
Wealth creation thinking: this thinking is related to wealth creation. Wealth is generated through product ideas and is either for the consumption of the family and the needs of its members or for the benefit of others. In addition, the farmer can cultivate his land and produce vegetables and products that benefit the family or are returned to him in return for payment. By selling it in the commercial market, the farmer gets a good economic return that benefits him[2].
Satisfying the needs and wants of individuals: the purpose of this economic activity is to satisfy the needs of individuals which are likely to be present or future needs, in the case of a person who acquires a special job through which he acquires money and thus uses it to satisfy his personal needs Family needs, also the individual may save the money he acquires now and keep it to use later in the future or after he leaves work This is one of the individual's future plans to meet his/her needs.
Cash income: All known economic activities that fall within the scope of a job, service, or occupation and are used to earn and receive money. People engage in these occupations to earn money with which they can meet family needs and satisfy their own needs through productive activities, thus enabling them to live and survive naturally through the income generated by productive business activities.
Development activities: Current economic activities do not only work to meet the needs of individuals and families but also include participation in the development and promotion of the community economy. Needs follow new needs as old needs cease to exist and new needs emerge, and thus economic resources are used for production The benefits of this process are not limited to the economic gains of the individual but benefit the community by providing employment opportunities for young people, and the more economic activity increases and expands, the greater the social development of the area.
The importance of economic thinking
Learning to make decisions: Economists get information and things about business and governments, and this economic knowledge, or so-called economic intelligence, is closely linked to the construction of data and models [3].
Economic impact: Economic impact extends into our daily lives, covering certain jurisdictions such as taxes, inflation, interest rates, economic wealth, inequality, emerging markets, energy, and the environment.
Sectoral impact: businesses of all sizes or sectors are heavily influenced and dependent on the economy in terms of how they seek out products, how they develop and price them, and how they market and advertise products. This demonstrates the importance of the economy as it offers a wide and varied range of career opportunities in different sectors. There are various sectors of the economy represented in agriculture, manufacturing, banking, and consultancy.
Inspiring business success: Since understanding consumer behavior is essential for adequate business success, theories help economists and models predict behavior and inform business strategies - an example of how big data can be analyzed.
International Perspective: The influence of economics extends to our living world, offering insight into both local and international, ancient and modern perspectives, and illuminating views of the interaction between other cultures and societies.
Understanding the economy as a whole is also important and is a key factor that can lead to the desired success.
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